Which statement below is correct about a sole proprietorship?
A) It is created by filing bylaws.
B) It has low start-up costs and minimal filing.
C) It can have multiple owners.
D) It faces double taxation.

Question

Quizplus · Accepted Answer

Sole proprietorships have low start-up costs and minimal filing requirements, making them the simplest and least expensive business structure to establish. They do not require filing bylaws (A), can only have one owner (C), and do not face double taxation (D), as profits are taxed only once on the owner's personal income tax return.

Which Statement Below Is Correct About a Sole Proprietorship